KORU Medical Posts Second Straight Profit as Gross Margin Hits 65.2%

KORU Medical swung to a $0.2 million net profit in the third quarter on revenue of $11.6 million, up 11.2%, marking its second consecutive profitable quarter. Gross margin jumped five full percentage points to 65.2% from 60.2%, according to the company's 10 November report.

The Mahwah, New Jersey company makes the Freedom subcutaneous infusion system: Freedom60 and FreedomEDGE syringe drivers plus flow-rate tubing and needle sets. Patients use the gear to self-administer drugs at home; nurses use it in infusion centers.

What do the numbers actually say?

The revenue mix splits unevenly. Domestic core revenue rose 31.6% as reported, or 10.1% after adjusting for a U.S. distributor that bought through an international distributor a year earlier. International core revenue fell 16.5% as reported but rose 23.2% on that same adjusted basis.

The margin story is doing the heavy lifting. Gross profit rose 20.5% to $7.5 million on revenue up just 11.2%. Operating expenses climbed only 3.2% to $7.4 million, which produced operating income of $0.2 million against a $0.9 million loss a year ago. Net income of $0.2 million replaced an $0.8 million loss.

The bull case, as the analysis frames it: margin gains are turning steady growth into profit. For 2026, KORU guides to revenue of $48.0 million to $48.5 million, up 17% to 18%, gross margin of 63% to 64%, and year-end cash above $8.0 million. Neither of its two $5.0 million credit lines is drawn.

Why did the CEO buy?

CEO Adam Kalbermatten bought 32,000 shares at $3.16 on 8 September, roughly two months before the earnings print. The stock closed at $3.69 on 12 November, putting the market value near $171.1 million. Shares surged 23% on 11 November, the day after results landed.

Insider buying at that size is the kind of signal practitioners watch. At $3.16, Kalbermatten's purchase sat about 14% below the post-earnings close.

What does this change for investors?

The risk side is real, and the source doesn't soften it. Growth is decelerating: 22.1% in the first quarter, 18.2% in the second, 11.2% in the third. Sequential revenue actually dipped from the second quarter's $12.0 million to $11.6 million, though the CEO expects a pickup in the fourth quarter.

The profit is also thin. Net income of $0.2 million per quarter means the nine-month picture is still a $0.3 million net loss. Of the $1.3 million in adjusted EBITDA, $0.9 million is stock compensation added back, leaving roughly $0.4 million of cash-adjusted profitability. Cash fell $1.5 million this year to $7.4 million.

So the practical question for anyone tracking KRMD: does a five-point gross margin expansion offset a growth rate that has roughly halved in three quarters? The 2026 guide, 17% to 18% growth at 63% to 64% gross margin, says management believes it can. The undrawn $10 million in combined credit capacity gives the balance sheet some cushion if cash keeps bleeding at the current $1.5 million annual pace.

The market's first verdict, that 23% single-day pop, suggests investors are pricing the margin story over the growth slowdown. Sustaining the rally now depends on the fourth quarter delivering the reacceleration the CEO has promised.